The Travellers’ Allowances and Miscellaneous Provisions (EU Exit) Regulations 2020

Made: at 9.15 a.m. on 3rd December 2020

Laid before the House of Commons: at 2.30 p.m. on 3rd December 2020

Coming into force in accordance with regulation 1

In accordance with section 51(1)(a) and (c) of the Taxation (Cross-border Trade) Act 2018, the Treasury consider it appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the EU to make the provisions in these Regulations in relation to value added tax and excise duty.

PART 1 — Introductory

Citation and commencement

1

These Regulations may be cited as the Travellers’ Allowances and Miscellaneous Provisions (EU Exit) Regulations 2020 and come into force on IP completion day.

PART 2 — Travellers’ allowances and simplified computation

Amendment of the Travellers’ Allowances Order 1994

2

The Travellers’ Allowances Order 1994[^f00002] is amended as follows.

3

After article 1 insert—

(1A) (1) In this Order “excise goods” means any goods chargeable with excise duty by virtue of any provision of— (a) the Alcoholic Liquor Duties Act 1979[^f00003]; or (b) the Tobacco Products Duty Act 1979[^f00004]. (2) For the purposes of this Order, goods shall be treated as contained in a person’s personal luggage where they are carried with or accompanied by that person or, if intended to accompany that person, were at the time of that person’s departure for the UK consigned by that person as personal luggage to the transport operator with whom that person travelled.

4

In article 2—

• (a) in paragraph (1)—

• (i) omit “who has travelled from a third country”;

• (ii) after “the United Kingdom” insert “at a place in Great Britain”;

• (iii) for “the Schedule” substitute “Schedule 1”;

• (b) omit paragraphs (2) and (3).

5

In article 3 omit the words from “That condition” to the end.

6

After article 5 insert—

(6) (1) This article has effect for the purposes of calculating the excise duty payable by a person entering the United Kingdom at a place in Great Britain on excise goods contained in the person’s personal luggage. (2) The person may elect for paragraph (3) to apply provided that the upper threshold given in column B of the Table in Schedule 2 and applicable to any of the goods is not exceeded. (3) Where this paragraph applies, the sum calculated by applying the rate specified in column A of that Table in respect of a description of goods is treated as the amount of excise duty payable on any goods of that description.

7

• (1) The Schedule is amended as follows.

• (2) Renumber the Schedule as Schedule 1.

• (3) In the Table in the second column headed “Quantity”—

• (a) in the entry for goods other than fuel and those described below—

• (i) for “travelled by air or sea” substitute “travelled by air, sea or rail”;

• (ii) for “did not travel by air or sea” substitute “travelled by way of private pleasure-flying or private pleasure-sea-navigation”;

• (b) in Note (b) omit “does not constitute travel by air or sea for these purposes. This”;

• (c) omit Notes (e), (h), (i), (j) and (n);

• (d) in the entry for “alcoholic beverages and alcohol, other than beer and still wine” for “1 litre” substitute “4 litres” and for “2 litres” substitute “9 litres”;

• (e) in the entry for “beer” for “16 litres” substitute “42 litres”;

• (f) in the entry for “still wine” for “4 litres” substitute “18 litres”;

• (g) in the entry for “tobacco products” after “smoking tobacco” insert “, or 200 sticks of tobacco for heating”.

8

After the Schedule insert—

SCHEDULE 2

Description	A: Rate of Excise Duty	B:Upper threshold
Alcoholic beverages and alcohol—
Beer	£0.80 per litre	110 litres
Still wine	£2.97 per litre	90 litres
Sparkling wine	£3.81 per litre	60 litres
Cider	£0.40 per litre	20 litres
Sparkling cider of an alcoholic strength not exceeding 5.5% by volume	£0.40 per litre	20 litres
Sparkling cider of an alcoholic strength exceeding 5.5% but less than 8.5% by volume	£2.88 per litre	20 litres
Made-wine	£2.97 per litre	20 litres
Spirits	£10.77 per litre	10 litres
Tobacco products—
Cigarettes	£320.90 per 1000 cigarettes	800 cigarettes
Hand rolling tobacco	£271.40 per kilogram	1 kilogram
Other smoking tobacco and chewing tobacco	£134.24 per kilogram	1 kilogram
Cigars	£305.32 per kilogram	200 cigars
Cigarillos(a cigarillo is a cigar weighing no more than 3 grams each)	£305.32 per kilogram	400 cigarillos
Tobacco for heating	£75.48 per 1000 sticks	800 sticks

PART 3 — Consequential provisions and miscellaneous amendments

CHAPTER 1 — Consequential provisions

References to section 13 of the Customs and Excise (General Reliefs) Act 1979

9

Any reference in any provision made by or under any enactment to orders made under section 13(1) of the Customs and Excise Duties (General Reliefs) Act 1979[^f00005] is to be read as including a reference to any regulations made under section 51 of the Taxation (Cross-border Trade) Act 2018 that grant relief from VAT or excise duty to persons entering the United Kingdom.

References to a person entering the United Kingdom

10

• (1) Where provision is made by or under any enactment to the effect that, on entering the United Kingdom, a person—

• (a) is not required to pay any value added tax chargeable in respect of specified goods imported into the United Kingdom, or

• (b) is otherwise relieved of the payment of value added tax on specified goods,

the reference to the United Kingdom is to be interpreted as including a control zone.

• (2) In this regulation ‘control zone’ has the same meaning as in article 2(4) of the Channel Tunnel (Customs and Excise) Order 1990[^f00006].

CHAPTER 2 — Miscellaneous amendments

Amendment of the Value Added Tax Regulations 1995

11

• (1) Part 16 (importations, exportations and removals) of the Value Added Tax Regulations 1995[^f00007] is amended as follows.

• (2) In regulation 117 omit paragraphs (4) and (7A) to (7D).

• (3) In regulation 129(1)—

• (a) omit the “and” at the end of sub-paragraph (a)(iii);

• (b) at the end of sub-paragraph (b) insert “and”;

• (c) after sub-paragraph (b) insert—

(c) the goods are not personal gifts on export as defined in regulation 2 of the Customs (Export) (EU Exit) Regulations 2019[^f00008],

• (4) Omit the heading immediately before regulation 131.

• (5) Omit regulation 131.

Amendment of the Tobacco Products Regulations 2001

12

• (1) The Tobacco Products Regulations 2001[^f00009] are amended as follows.

• (2) In regulation 23 (exceptions to the requirement to carry a fiscal mark)—

• (a) omit paragraph (1)(aa);

• (b) in paragraph (1A)(b) after “1979” insert “or under section 3 of the Taxation (Cross-border Trade) Act 2018”.

• (3) After regulation 25(2) (offences-supplementary provisions) insert—

(2A) A person afforded relief from duty under section 3 of the Taxation (Cross-border Trade) Act 2018 is not guilty of an offence contrary to section 8G(4) of the Act unless his conduct occasioned the excise duty point prescribed by regulation 12(4) above.

Amendment of the Duty Stamps Regulations 2006

13

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CHAPTER 3 — Sales on board ships, aircraft and trains

Revocation of the Excise Goods (Sales on Board Ships and Aircraft) Regulations 1999

14

The Excise Goods (Sales on Board Ships and Aircraft) Regulations 1999[^f00011] are revoked.

Consequential amendments and revocation

15

Omit regulation 7(2)(d) (interpretation of other regulations relating to excise goods) of the Excise Duty Points (Etc.) (New Member States) Regulations 2004[^f00012].

16

Omit regulation 16(2) (other regulations) of the Hydrocarbon Oil (Registered Remote Markers) Regulations 2005[^f00013].

17

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18

The Excise Goods (Sales on Board Ships and Aircraft) (Amendment) Regulations 2010[^f00014] are revoked.

19

Omit regulations 17 to 20 (amendments to the Excise Goods (Sales on Board Ships and Aircraft) Regulations 1999) of the Excise Goods (Aircraft and Ship’s Stores) Regulations 2015[^f00015].

CHAPTER 4 — Export shops and stores

Amendment of the Excise Goods (Export Shops) Regulations 2000

20

• (1) The Excise Goods (Export Shops) Regulations 2000[^f00016] are amended as follows.

• (2) In regulation 3 (interpretation)—

• (a) for the definition of “entitled passenger” substitute—

• “entitled passenger” means a person holding a relevant transport document who is travelling to their destination from or via the port, airport or international railway station or terminal where the export shop[^f00017] is situated.

• (b) after the definition of “export shop” insert—

• “international railway journey” means a journey on board a railway vehicle from Great Britain to any other country or territory;
• “international railway station or terminal” means a railway station or rail terminal from which an international railway journey may be made and includes the terminal area at Folkestone serving the tunnel linking England and France;

• (c) for the definition of “passenger” substitute—

• “passenger” means a person holding a transport document for travel by sea, air or rail who intends to travel from the port, airport or international railway station or terminal where the export shop is situated;

• (d) after the definition of “passenger” insert—

• “relevant transport document” means a transport document for a voyage, flight or international railway journey to a destination outside the United Kingdom, other than the Isle of Man, but does not include a transport document for a journey from a port, airport or international railway station or terminal in Northern Ireland to a destination in the European Union to which Council Directive 2008/118 EC[^f00018] applies.

• (3) In regulation 7(2) (storage of excise goods) for “port or airport”, in both places where these words appear, substitute “port, airport or international railway station or terminal”.

• (4) In regulation 8(1) (supplying passengers with excise goods) for “transport document” substitute “relevant transport document”.

• (5) In regulation 9(2) (removal) for “port or airport” substitute “port, airport or international railway station or terminal”.

• (6) In the Schedule (supply of pre-ordered excise goods)—

• (a) in paragraph 1 for the definition of “qualifying ticket” 1 substitute—

• “qualifying ticket” means a transport document valid for travel by sea, air or rail from the port, airport or international railway station or terminal where the export shop is situated;

• (b) in paragraph 4 for “port or airport” substitute “port, airport or international railway station or terminal”;

• (c) in paragraph 5(b) for “port or airport” substitute “port, airport or international railway station or terminal”.

Amendment of the Excise Goods (Aircraft and Ship’s Stores) Regulations 2015

21

• (1) The Excise Goods (Aircraft and Ship’s Stores) Regulations 2015[^f00019] are amended as follows.

• (2) In regulation 2 (interpretation) after the definition of “fuel substitute” insert—

• “operator of the railway vehicle” means the person designated as train manager by the person operating the international service on which the railway vehicle is engaged;

• (3) For regulation 3 (duty free stores) substitute—

(3) (1) Excise goods may be shipped or carried for use on a ship, aircraft or railway vehicle as stores without payment of duty or on drawback in such circumstances as the Commissioners may specify in a published notice. (2) The power for the Commissioners to specify circumstances in a published notice under paragraph (1) includes power to make different provision in relation to a ship, aircraft or railway vehicle which is on a journey to, from or via Northern Ireland.

• (4) In regulation 5 for “master of the ship or operator of the aircraft” substitute “master of the ship, operator of the aircraft or operator of the railway vehicle”.

• (5) In regulation 6(a) for “voyage or flight” substitute “voyage, flight or railway journey”.

• (6) In regulation 8(a) for “voyage or flight” substitute “voyage, flight or railway journey”.

• (7) In regulation 11 (goods consumed in a port or on a flight in the United Kingdom - payment of duty)—

• (a) in paragraph (1)—

• (i) omit the “or” at the end of sub-paragraph (a);

• (ii) at the end of sub-paragraph (b) insert “or”;

• (iii) after sub-paragraph (b) insert—

(c) consumed on board a railway vehicle in the United Kingdom in circumstances specified by the Commissioners in a published notice,

• (b) in paragraph (2) for “consumed on a journey or in port” substitute “consumed on a journey, in port or on board a railway vehicle in the United Kingdom.”.

PART 4 — Transitional and savings provisions

The Travellers’ Allowances Order 1994

22

The Travellers’ Allowances Order 1994[^f00020] as it had effect immediately before IP completion day continues to have effect in relation to persons who are travelling on a voyage, flight or railway journey to the United Kingdom that is scheduled to depart before IP completion day.

The Value Added Tax Regulations 1995

23

The amendments made by regulation 11(2) and (5) do not have effect in relation to goods that were purchased before IP completion day.

The Excise Goods (Sales on Board Ships and Aircraft) Regulations 1999

24

The Excise Goods (Sales on Board Ships and Aircraft) Regulations 1999[^f00021] continue to have effect in relation to persons and excise goods on board any ship or aircraft that is scheduled to depart before IP completion day.

The Tobacco Products Regulations 2001

25

• (1) The Tobacco Products Regulations 2001[^f00022] as they had effect immediately before IP completion day continue to have effect in relation to specified tobacco products that are in the course of a movement on IP completion day.

• (2) In paragraph (1)—

• (a) “specified tobacco products” has the meaning given in regulation 3 of the Tobacco Products Regulations 2001;

• (b) goods are “in the course of a movement on IP completion day” where those goods have been dispatched before IP completion day.

The Duty Stamps Regulations 2006

26

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Signed

James Morris — Maggie Throup — Two of the Lords Commissioners of Her Majesty’s Treasury — At 9.15 a.m. on 3rd December 2020

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations make changes to existing provisions relating to travellers’ allowances; provide for a simplified computation of excise duty in specified circumstances; make changes to existing secondary legislation relating to excise duty and value added tax; and make consequential, transitional and savings provisions in order to make provision appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom (“UK”) from the European Union (“EU”).

Part 2 of these Regulations amends the Travellers’ Allowances Order 1994 (S.I. 1994/955) to ensure that existing travellers’ allowances for goods continue to operate correctly after the UK withdraws from the EU and to introduce a new simplified computation for travellers to use to calculate their excise duty liability in certain circumstances. These amendments are only effective in respect of goods being brought into Great Britain from outside the United Kingdom. A separate statutory instrument will cover journeys to Northern Ireland.

In Part 3 of these Regulations, regulation 9 provides for any reference by or under any enactment to orders made under section 13(1) of the Customs and Excise Duties (General Reliefs) Act 1979 to be read as including a reference to any regulation made under section 51 of the Taxation (Cross-border Trade) act 2018 that grant relief from VAT or excise duty to persons entering the UK.

Regulation 10 makes it clear that, where a VAT relief applies in circumstances where a person enters the UK, it will also apply where a person enters a control zone.